i would make the cane out of a wood rode rode that you can find at places like home depot and the the dragon head can be attached to the cane my hot glue or crazy glue.

This would work, if you really wanted to make sure it was secured I'd get a screw-in anchor as well. Drill a hole in the dowel and put the anchor it it and just make sure the screw is in the dragon head while sculpting. When it's all dry and ready to be attached put your adhesive of choice in the anchor and screw the parts together and let dry.